In the realm of real estate, the synergy between homeowners, realtors, and appraisers is not just beneficial; it’s essential.
Drawing from Stephen Covey’s 6th habit, “Synergize”, we see the immense value in collaborative efforts, especially when it comes to the precise task of home valuation. This principle underscores the strength found in teaming up, highlighting how collective inputs lead to superior outcomes.
The Unique Roles in Real Estate Transactions
Realtors are the navigators of the real estate transaction process, masters at brokering deals to ensure fairness and optimal outcomes for their clients. With an in-depth knowledge of market areas honed over years, they are pivotal in guiding homeowners through the complexities of selling or buying a home.
Appraisers, on the other hand, bring a different set of skills to the table. As valuation experts, they delve into the nitty-gritty details of property value, armed with data and trends to pinpoint the most accurate market value.
Their expertise becomes particularly crucial in fluctuating markets, where accurate valuations can make or break a deal.
The Synergy in Action: A Real-World Scenario
Consider a homeowner eager to sell their property. They believe their home is worth $350,000, while their realtor, considering current market dynamics, suggests a starting point of $300,000.
Here, the realtor could either acquiesce to the homeowner’s wishes or provide detailed market insights to align expectations. This is where an appraiser’s expertise becomes invaluable.
Data and Evidence: Understanding Louisville’s Market
The above graph highlights the trend for homes that sold in MLS Area 1, Area 6, and Area 7. While Area 1 experienced a decline in sales prices with 114 sales, Areas 6 and 7 showed an uptick, boasting 145 and 96 sales, respectively.
The above graph highlights the weekly volume of sales in Louisville, KY. since week one of 2024
The above graph illustrates the median sale price for each MLS area in Louisville, KY over the first 7 weeks of 2024. As can be seen from the above charts, in week 7 of 2024, Louisville’s real estate market presented varied trends across its MLS areas.
The average days on market hovered between 20 and 25, with an overall median sales price of $249,000 across Louisville.
However, disparities exist, with Area 3 approaching a median of $400K and Area 8 nearing $450K. Such granular data is crucial for appraisers and realtors alike to provide homeowners with accurate, realistic valuations.
Leveraging Synergy for Success
When realtors and appraisers collaborate, sharing insights and data, they ensure homeowners receive the most accurate valuation, tailored to the nuanced dynamics of their specific MLS area.
This synergy not only enhances trust among all parties but also secures a smoother transaction process, grounded in realism and mutual understanding.
Embrace Collaboration
For homeowners, understanding the value of your home is more nuanced than it might appear. Engage both your realtor and a local Louisville appraiser in the conversation.
Realtors, don’t hesitate to bolster your market knowledge with insights from appraisers. Appraisers, your expertise is more critical than ever in today’s data-rich age—collaborate with realtors to demystify market trends for homeowners.
The Winning Formula
Synergy, as Stephen Covey highlighted, is about producing a collective outcome that surpasses what individuals could achieve alone.
In Louisville’s diverse real estate landscape, embracing this collaborative spirit ensures that homeowners, realtors, and appraisers alike can navigate the valuation process with confidence, accuracy, and success.
Let’s work together, leveraging our unique strengths for the common goal of transparent, fair, and effective real estate transactions. Go Louisville, where synergy is indeed where it’s at!
In the heart of Louisville, real estate embodies a simple truth: everyone can indeed win. As an appraiser and an optimist who always looks for the silver lining, I see the essence of ‘Win-Win’ deeply ingrained in the process of buying and selling properties.
Just think of the definition of market value—a probable price struck when buyers and sellers, each acting in their own best interest without pressure, reach a harmonious agreement. This is the epitome of ‘Win-Win’ in our world.
But let’s get practical—how does this philosophy translate into the nuts and bolts of property valuation and deciding how to list your home?
It all begins with facts. A quote that I love is as follows: True victory is not in the acquisition alone but in the integrity of the transaction. Misrepresentation benefits no one.
That’s why due diligence is a cornerstone. And for us real estate professionals, our role is crucial—we must anchor our valuations in reality, not fancy. In this context, thinking ‘Win-Win’ is built on understanding the facts of our current real estate landscape in Louisville.
Let’s lay out these facts, not with complexity but with the clarity that empowers. With a clear view of how the market has fared in the first month of 2024, we pave the way for decisions that benefit all.
Active Listings: Climbing Towards More Opportunities
The bar graph illustrates an upward trend in the number of active listings from 820 in the first week to 1163 by the fourth week.
A growing inventory could be indicative of two trends: either sellers are entering the market to take advantage of favorable conditions, or it could suggest a slowdown where listings are staying on the market longer than in previous periods.
It’s important for agents and homeowners to watch this trend closely, as a high inventory level could lead to a more competitive market for sellers, possibly affecting prices and selling strategies.
Cumulative Sales: Assessing the Market’s Lift-Off
The “Cumulative Weekly Sales – 2024” graph for Louisville, KY, depicts an upward trend in property sales over the first month, with sales rising from 62 to 332. While at first glance this seems to indicate a thriving market, we have to be careful.
The trend does not necessarily signify robust growth without a benchmark. Seasonal influences also play a crucial role in real estate activity. So, it’s important to question whether this early-year sales uptick means.
Time will tell but for the sake of home buyers, realtors and appraisers, we hope it’s a sign of greater sales volume than last year.
In this context, a Win-Win scenario materializes when everyone leverages this data coupled with the information about active listings to make decisions that reflect both the present moment and the potential of the market’s future.
MLS Areas: Decoding the Sales Price Variance
The graph showcasing the “Median Sold Price by Area – 2024” in Louisville, KY, for single-family residences reveals varied median prices across nine different areas.
This variance highlights the diverse nature of the housing market within the city, suggesting that certain areas are more in demand or possess attributes that command higher prices—factors such as school districts, proximity to amenities, and neighborhood desirability might be influencing these figures.
Notably, Area 8 stands out with a median price significantly higher than the others, which could indicate a premium neighborhood or area with larger or more luxurious homes. Conversely, Areas 1 exhibits a notably lower median sold price, which could reflect a variety of factors such as older homes, or more modest housing options.
Interesting Fact: Area 1 had the second highest amount of sales volume for the first four weeks of January 2024 with 47 sales. I personally have done more Louisville appraisals in this part of town in the past 30 days. Area 8 came in at #5 with 35 sales. It’s funny how the winner changes when we change the lens that we look through.
Weekly Sales: Unpacking the Market’s Pulse
The “Weekly Sales Counts – 2024” graph for Louisville, KY, presents a roller coaster like sales pattern within the first month of the year. We begin with 62 sales in week one, surge to 115 sales in the second week, then experience a decrease to 93 in week three, before returning to the starting point of 62 sales in week four.
This ebb and flow could reflect a number of underlying market dynamics. The initial rise in sales might indicate a wave of activity often seen at the beginning of a new year, as buyers and sellers enter the market with fresh goals.
Then, week three seems to whisper, “Let’s just slow down and think about this,” possibly due to buyer hesitancy or sellers holding out for better offers. By week four, we’re back to where we started, which could be a sign of market stabilization—or maybe it’s just taking a nap after the excitement of the year end – I think/hope it’s the latter!
The subsequent fall could suggest that this initial enthusiasm is tempered by external factors, such as economic news or interest rate adjustments, which may cause market participants to act more cautiously.
Overall, this data underscores the importance of monitoring weekly market movements closely, as they can provide early indications of shifts in buyer and seller behavior that could impact strategy and decision-making.
Valuations: Crafting a Win-Win Strategy
When it comes to valuations, ‘Think Win-Win’ is about fairness and balance. For realtors and clients in Louisville, here’s how you can put this into practice:
Stay Informed and Educate: The real estate market is dynamic, and being well-informed is key. An educated homeowner is more likely to price their home accurately, and an educated buyer can make a fair offer.
Regular Market Analysis: Keep an eye on how homes are priced in different areas. Realtors should provide homeowners with a regular analysis of how the market is moving, not just in terms of price but also in how long homes stay on the market.
Set Realistic Expectations: Help clients set realistic expectations based on market data. If the market is indicating a decrease in demand, homeowners should be prepared for potentially longer selling times.
Listen and Adapt: A Win-Win situation comes from understanding what the other party values. Listen to buyers and sellers carefully and adapt your strategy to align with their goals.
Prepare for Different Scenarios: The market can shift unexpectedly. Have a plan for different scenarios, whether it’s a sudden uptick in interest rates or a change in buyer sentiment.
Conclusion
In the Louisville market, adopting a ‘Think Win-Win’ approach in real estate isn’t just idealistic, it’s practical. It’s about creating transactions where buyers and sellers walk away satisfied, where the value is fair, and where the community thrives on the integrity of its dealings.
I invite you to reflect on this philosophy and how it has shaped your experiences in real estate. Have you encountered situations where the Win-Win approach turned a negotiation around or created a surprising opportunity? Share your stories and insights. Let’s continue the conversation and learn from each other, so we can all reap the rewards of a market that works for everyone.
It’s been said that there are 2 sure things in life: death and taxes. The first one, death, is non-negotiable. However, regarding taxes (on our property) there’s good news! These can be appealed! But here’s a question, is a tax appeal something that:
A. only the rich do
B. is so hard to do that it’s not worth it
C. something that anyone is capable of doing
If you answered C, you are right!
But how does it work? Take a look at the video below that explains the first step. Or you can read
an excerpt from the Jefferson county PVA website (below the video)
Excerpt from Jefferson county PVA website: https://jeffersonpva.ky.gov/property-assessment/pva-online-conference/
“Step 1: Conference at the PVA Office
Under state law ( KRS 133.120) property owners who wish to contest their assessment must first hold a conference with the PVA Office during the annual Open Inspection Period (OIP). Each year the OIP begins on the first Monday in May and continues for a thirteen day period including two Saturdays.
Documentation that supports your opinion of value must be submitted during your online conference or mailed to the PVA within 24-hours of your online conference submission. Documentation submitted to the PVA will be considered the property of the PVA. Please retain a personal copy before submitting documentation.
While conferences with the PVA are usually informal, you may choose to have someone represent you. Anyone who is hired to represent you must submit a letter of authorization and must be an attorney, certified public accountant, certified real estate appraiser [a Louisville appraiser is often best], Kentucky licensed real estate broker, an employee of the property owner, or someone who holds a professional appraisal designation (see bottom of page) recognized by the Kentucky Department of Revenue.
For convenience, a telephone conference can be arranged for those with physical disabilities or other limitations if not conferencing by mail. If you schedule a telephone conference, a Conference Form, as well as any documentation that supports your opinion of value, must be mailed to us prior to your scheduled conference.”
-End of excerpt, brackets ours
The majority of people accept the outcome at the first level or step. However, if you are not satisfied with the outcome after the first step, then you have the option of moving to the second, if you are still not satisfied, you can then utilize the 3rd and final step (please see link above for 2nd and 3rd steps).
The one thing to remember is that appealing your property taxes is not as hard as you may think, and if you just don’t have the time you can easily have an authorized representative do it for you.
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Thanks for reading,
Conrad Meertins, Jr.
www.choiceappraisals.org 502-309-2323
